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FTSE falling out of wedge formation
The FTSE is moving lower once more following a rebound back up to yesterday’s high of 7258. The resulting wedge pattern is typically bearish and that appears to be playing out. Given the sell-off we have seen since Monday’s top, there is a good chance we are seeing a reversal in fortunes for the FTSE, with sterling also starting to look more bullish.
Confirmation that we are set on another leg lower would come with an hourly close below 7215. Should that occur, then a bearish outlook would be in place unless we break back above 7260.